Sonic Automotive Inc. (NYSE:SAH) Q1 2015 Earnings Conference Call - Final Transcript

Apr 21, 2015 • 11:00 am ET


Sonic Automotive Inc. (NYSE:SAH) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Sonic Automotive First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions]. As reminder ladies and gentlemen, this call is being recorded today Tuesday, April 21, 2015.

Presentation materials, which management will be reviewing on this conference call, can be accessed at the Company's website at by selecting Investors Relations under our Company dropdown box, and then choosing Webcasts and Presentations on the right side of the page.

At this time, I would like to refer to the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. During this conference call, management may discuss financial projections, information or expectations about the Company's products or markets or otherwise make statements about the future. Such statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.

Thank you. I would now like to introduce Mr. Scott Smith, President and Chief Strategic Officer of Sonic Automotive. Mr. Smith, you may begin your conference.

Scott Smith

Thank you, good morning ladies and gentlemen. Welcome to Sonic Automotive's first quarter 2015 earnings call. I'm Scott Smith, the Company's President and Chief Strategic Officer and Co-founder. Joining me on the call today are David Smith, our Vice Chairman; Heath Byrd, our CFO; Jeff Dyke, our Executive Vice President of Operations; and C.G. Saffer, our Chief Accounting Officer.

I'll start the call today with an overview of our strategic initiatives. I'll then turn the call over to Heath for a review of our first quarter financial results, followed by Jeff with a look at our operating performance. We'll then have some closing comments and open the call for your questions. With that please turn to Slide labeled strategic focus.

Our strategic focus has been consistent for the last several years, grow our base business; own our real estate; and return capital to shareholders. This strategic focus will continue through the foreseeable future. As most people, who follow our Company are aware, Sonic Automotive is growing its base business through two very unique and bold avenues that I believe will give us a competitive advantage and differentiate Sonic from others in retail automotive to are customer centric, One Sonic-One Experience and through our pre-owned specialty retail stores called EchoPark.

In addition, Sonic Automotive is working very closely with our manufacture partners on open points and we evaluate acquisition opportunities continuously.

Let's take a closer look at One Sonic-One Experience. Simply put, it's an exercise in the brand building. We're building a brand that is centered around customer experience. The objective is to put the power into the customers' hands, where they can enjoy the automotive purchasing experience with one associate, at one price, in one hour. We believe that our experience will be